This warehouse at 297 Getty Ave. in Paterson was transformed into commercial and retail space under a builder's plan.

PATERSON — The city may pay $675,000 to settle a tax appeal on massive industrial property in the 6th Ward and officials say they will have to borrow money to cover the expense.

The former American Can Company building that stretches across several blocks on Getty Avenue had been assessed at $24 million in the city’s 2007 property revaluation, according to municipal documents. But its assessment will be reduced to $17.5 million under the proposed settlement, the documents say.

The city would have to refund the building’s owners $675,000 for taxes paid from 2008 through 2012.“We’re going to have to bond it,” said Councilman Kenneth Morris. “We don’t have that kind of money.

”Only part of the 750,000 square-foot building currently is being used, with tenants including a warehouse, car dealership and trucking company, officials said. The vacant areas of the building are the main reason the owners were able to get the value of the building reduced by such a large amount, officials said.

Newark-based Dubrow Management had owned the building until June 2010, when it sold the property to Alma Realty, the same company that owns the Center City Mall as well as the Presidential Towers housing complex, officials said. Alma bought the property, which starts near Madison Avenue and continues to Thomas Street, for $9.5 million, officials said.

“I’ve been working with them (Alma) to try to get some tenants,” said Councilman Andre Sayegh, who represents the 6th Ward where the building is located. “That would be a major ratable for us.”

Representatives of Alma Realty declined to comment on the building’s status. City officials said the company has gotten planning approvals to convert part of the building to retail use, including an indoor parking facility. But the conversion has not started yet.

The City Council is scheduled to vote on the tax settlement at its meeting on February 25.